The unlisted shares of Arkade Developers were trading at a premium of Rs 80, which equates to a GMP of 62.5 percent against the upper end of the IPO price of Rs 128.
Arkade Developers IPO GMP Today: Arkade Developers’ unlisted shares demand a significant premium in the grey market as its initial public offering (IPO) opens for subscription today. Shares of Arkade Developers are selling at a premium of Rs 80, representing a GMP of 62.5 percent over the IPO price of Rs 128, indicating the company’s significant market attraction.
The IPO of Arkade Developers aims to raise Rs 410.00 crores by launching an issue size of 32,031,250 equity shares. Arkade Developers reported that it raised Rs 122.40 crore from anchor investors following the bidding, which ended on Friday, September 13, 2024.
Arkade Developers IPO Details
The IPO price band of Arkade Developers is between Rs 121 and Rs 128, with a lot size of 110 shares. As a result, investors can bid for a minimum of 110 shares and multiples thereof. A retail investor must bid at least Rs 14,080 to participate in the public issue.
Arkade Developers aims to use the IPO proceeds to pay Rs 250 crore in development expenses and about Rs 143.5 crore for the acquisition of unidentified land for real estate projects. Bigshare Services is the registrant for the Arkade Developers’ initial public offering, while Unistone Capital is the book-running lead manager.
The three-day subscription window for the Arkade Developers IPO will close on Thursday, September 19, 2024. On Friday, September 20, 2024, The shares will be allocated and credited to demat accounts on Monday, September 23, 2024. The listing date of the stock of Arkade Developers is September 24, 2024, with listings on the BSE and NSE.
Arkade Developers IPO review
Deven Choksey Research analysts remain confident about Arkade Developers’ IPO, giving it a subscribe recommendation. The brokerage business stated that the company produced a strong 66% CAGR in sales from FY22 to FY24, with EBITDA and PAT CAGRs of 75% and 55%, respectively, during the same period, demonstrating operational efficiency. According to the experts, its ROE and ROCE are an excellent 47%, indicating significant returns underpinned by effective project management and execution capabilities.
Choice Brokerage has awarded a Subscribe rating to Arkade Developers’ public offering. According to Choice, at the higher end of the price range, ADL is asking for an EV/Sales ratio of 3.2x, which is lower than its competitors.
Historically, the company focused on the western suburbs of MMR, but in recent years, ADL has grown into the eastern suburbs of Mumbai. The brokerage feels that this corporate expansion strategy, combined with ADL’s nearly debt-free condition and continuous on-time project delivery, prepares the company for long-term growth.
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